In Pa. today, Obama to urge immediate extension of middle-class tax cuts
President Obama to urge immediate renewal of expiring tax cuts on those making less than $250,000 year, warning of potential hit to consumer spending over holidays due to uncerainty.
In Pa. today, Obama to urge immediate extension of middle-class tax cuts
Thomas Fitzgerald, Inquirer Politics Writer
President Obama will argue Friday that immediate renewal of lower Bush-era tax rates for the middle-class could prevent a “hit to consumer spending” during the holidays, as he visits a Montgomery County toy factory, according to a White House official.
The campaign-style stop is part of a stepped-up effort designed to pressure Republicans, who control the House and have blocking power in the Senate, to bend to the president’s will in negotiations over a budget deal to avoid the fiscal cliff. If the two sides don’t agree on a deficit-reduction plan by Dec. 31, the income tax cuts of 2001 and 2003 will expire and automatic budget cuts will begin.
That’s the cliff, which experts say would have a recessionary effect on the economy.
Obama wants to allow taxes to go up on those making more than $250,000 a year while renewing the lower rates for those under that threshold. Republicans want to keep all the rates from increasing, arguing a fragile economic recovery is no time to raise the tax burden.
By focusing relentlessly on taxes, Obama has thrown the GOP on the defensive. But Republicans are pointing out that the president has yet to detail any real spending cuts to round out what he has called his “balanced” approach to deficit reduction.
In particular, they say that in exchange for any concessions on taxes, Obama must support restraints on the cost of Medicare, Social Security and Medicaid, the federal government’s biggest and fastest-growing programs.
“The Democrats have yet to get serious about real spending cuts,” House Speaker John Boehner said Thursday. “No substantive progress has been made…over the last two weeks.”
Boehner was speaking after the White House presented a proposal to him that relies on $1.6 trillion in tax revenue over 10 years, few details on spending cuts – and millions in more stimulus spending.
The president is visiting the Rodon Group in Hatfield, Pa. It is the sole U.S. manufacturer of K’Nex brand construction toys and also makes Tinkertoy products and Lincoln Logs. Double message bonus for the White House: Rodon brought 95 percent of its packaging and manufacturing back from China over the past few years, leading to a 25 percent increase in the size of its workforce, to 150.
“As we move into the holiday season, Democrats and Republicans should come together to renew middle class tax cuts so families have more certainty at this critical time for our economy,” said a White House official previewing the visit.
Expiration of the tax cuts for those making under $250,000 would increase next year’s tax bill on a median-income Pennsylvania family of four by $2,200, the administration calculates. (Median income in the state is $80,400.)
Low taxes for the past 10 years have only grown the deficit, added wealth for the wealthy, and given tycoons and corporations an opportunity to sock away a few trillion dollars overseas, while expanding their job creation in low wage meccas. If business needs more capital to expand, all they have to do is look to their own off shore accounts and start spending.— wokmaster- Well said!
Going back to Clinton tax rates will be good for the whole nation that includes the millionaires themselves.
Let Bush tax cuts expire! Let the country prosper!— Seed1 - We arent going back to the Clinton rates. Only for the top 2%. The President is urging that the Bush tax cuts for the middle class be extended. — tr88
- Obama middle class tax will be sent to congress on Jan 2nd.
Meehan, Gerlach, Dent, Fitzpatrick, Runyan better vote for the middle class tax break at that time for their survival.— Seed1 - That's actually not true and not the whole story.
Obama has tied this request to being granted UNILATERAL authority to increase the national deficit on his own and spending another $5 TRILLION dollars over the next 4 yrs.
But that's ok, we're used to Democrats telling half the story.— Professor1982 - LoL...Let's tell the whole story here. Obama wants to:
1) ELIMINATE THE NEED FOR A PRESIDENT TO SEEK CONGRESSIONAL APPROVAL TO INCREASE THE NATIONAL DEBT?!?
2) INCREASE TAXES BY $1.6 TRILLION
3) ISSUE ANOTHER ROUND OF STIMULUS TO BAILOUT UNDERWATER HOMEOWNERS.
Wow, Obama must have been absent the day they taught history in school, but short of Amendment to the Constitution, only CONGRESS can approve debts to the nation.— Professor1982 - If you think "higer taxes" is what makes a country prosperous, then you truley are a dolt.
Under your logic, Europe should be an economic superpower, awash in fiscal stability.— Professor1982 - Hey webmaster, batten down the hatches. the end is near for all you obozoites — oyhumid
- "The campaign-style stop is part of a stepped-up effort designed to pressure Republicans" No doubt. But the House GOP is in Washington DC, not in Hatfield. Perhaps the President should be negotiating instead of using his bully pulpit, especially if he's trying to be a divider and not a uniter.— theodotius
- Washington is dysfunctional with tea baggers in charge of GOP.
Hatfield and its citizens have solution as they are impacted by the GOP blind legion to millionaires.— Seed1 - Poor Seed - Still resorting to name calling.
You are a traitor akin to Benadict Arnold.— Professor1982 - We are going broke as a nation, Pensions are the big problem. Look how much more money everyone would have if our taxes went to the proper places. Teachers and public unions are the fat cats, they retire at a young age and us working stiffs have to work until we are 67 to support them. All their pensions are in the dump, but because the Government backs it they can increase it like giving candy to a baby.At some point we will all wake up and smell the coffee.— BushisGood
- wok, I don't think taxes will be the cure-all for the situation we're in. I do agree in raising rates for the wealthy, but we also need to reduce spending.— Commentdant_Klink
- Commentdant - fiscally, the sequestration needs to go forward along with the expiration of the bush tax cuts. Then in January, Congress can lower the taxes on the middle class and count investment income of all types as standard income - effectively raising taxes on the wealthy. Plus regulate the financial crooks, who majorly caused this financial debacle, by re-instating Glass-Steagall and banning derivatives bets on basic materials, precious metals, commodities and food and water, which would lower prices across the board, as it would stop the manipulation.
The current proposal with supposed saving of $4 trillion (questionable at best) over ten years- that’s only $400 billion a year- the yearly deficit is over a trillion a year.
We’re spending $1.5+ TRILLION a year on defense, 146 security forces, 16 intel agencies/depts. and 700+ foreign military bases. END all these senseless wars on all fronts and cut all these in half and cancel the F-35 and three carrier groups in the pipeline and shave $800-900 BILLION A YEAR off the deficit. This combined with changing ineffective policy and reducing respective agencies or closing them and reforming gov pay, benefits and pensions and we pretty much have a balanced budget. Then we can get on with how to pay off the $16 trillion (and counting) debt.— wokmaster - 683 Billion is what we spend on defense.Not 1.5 trillion.----
By title
The federally budgeted (see below) military expenditure of the United States Department of Defense for fiscal year 2010, including the wars in Iraq and Afghanistan, is:[9]
Components Funding Change, 2009 to 2010
Operations and maintenance $283.3 billion +4.2%
Military Personnel $154.2 billion +5.0%
Procurement $140.1 billion −1.8%
Research, Development, Testing & Evaluation $79.1 billion +1.3%
Military Construction $23.9 billion +19.0%
Family Housing $3.1 billion −20.2%
Total Spending 683.7 billion +3.0%— tr88
You can reach Tom Fitzgerald at 215-854-2718 or tfitzgerald@phillynews.com.
Reach Thomas at tfitzgerald@phillynews.com.
